NHPC shed 4.63% to Rs 21.65 after consolidated net profit dropped 13.52% to Rs 855.49 crore on 6.49% rise in revenue from operations to Rs 2,779.48 crore in Q1 June 2020 over Q1 June 2019.
Consolidated profit before tax (PBT) slipped 6.85% to Rs 1,055.80 crore in Q1 June 2020 as against Rs 1,133.47 crore in Q1 June 2019. Current tax expense for the quarter tumbled 30.40% at Rs 207.07 crore as against Rs 297.53 crore paid in Q1 June 2019. The Q1 result was declared during trading hours today, 31 August 2020.
NHPC's primary source of revenue is from generation and sale of hydroelectricity. During the outbreak of COVID-19, the Government of India and State Governments had declared lockdown which have affected business in general. Power supply being an essential service and considering the must-run status for Run-of-the-River (ROR) projects and scheduling to the extent possible by RLDCs in case of ROR with Pondage and Storage Projects, there was no material impact of COVID-19 on the financial performance of the company.
However, as per the directions of the Ministry of Power on 15 & 16 May 2020, the company has given a one-time rebate of Rs 185 crore to DISCOMs and Power Departments of States/ Union territories for passing on to ultimate consumers on account of COVID-19 pandemic. The said rebate has been presented as an 'exceptional item' in the statement of financial results.
NHPC is engaged in electric power generation by hydroelectric power plants. The firm is also engaged in contracts, project management and consultancy works.
As of 30 June 2020, the Government of India held 70.95% stake in the company.
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